Commodities: Sugar climbed to a 7-month high on supply concerns that drought in Brazil will affect crop output while wet weather in Australia has disrupted crushing & shipping & cane yields in India may be reduced by flooding. Harvests by Thai & US producers are also being delayed by wet weather. Separately, cotton also surged 65% to 15-year highs on mounting concerns that demand will outstrip supply as demand in China topped domestic prodn by 3.6m tons, widening the supply deficit.
On the coffee front, Indonesia's coffee exports for yr ending Sep 10 are est to be 10% lower yoy as prodn has been impacted by heavy rains & delayed harvests & prodn next year is expected to be little changed. A decline in Indon prodn, coupled with the possibility of another round of stock-piling by Vietnam, Asia's largest coffee grower will likely provide further support to coffee prices. Sweet news for both Olam (cotton, coffee) & Noble (sugar).
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